A Note on Income Inequality and Macro-economic Volatility

Income inequality may influence macro-economic variables by affecting the money multiplier and the trade-off between inflation and output. In an AD-AS model with imperfect foresight income inequality intensifies the volatility of output and inflation rate by increasing the likelihood of oscillations as well as their magnitude. Volatility is, however, moderated when income inequality prolongs the business cycles.     

Current Foresight Activities in France, Spain, and Italy

Recent years have brought a significant revival of public foresight activities in many European countries, including France, Spain, and Italy. The French context is rather specific in the sense that public planning and foresight (prospective) are an old tradition starting in the early post war period, but was progressively abandoned until its international revival during the 1990s. The recent experiences combine a mix of methods including the experimental reproduction of foreign experiences for long-term science and technology foresight (allowing comparisons of the experts’ opinions between countries) and the development of a specific study of critical technologies in the shorter term with the direct aim of orienting and improving the microeconomic strategies in the country.Spain and Italy started their own tests of foresight procedures later. The diffusion of foresight approaches and methods is certainly influenced by cultural proximities between countries of Roman civilization, but the different national settings led to relatively diverse experiences. International comparisons reveal the wide variety of methods and implementations that can be contemplated at present in Europe—a living laboratory of public foresight experiences.     

Ramsey Equilibrium in a Two-Sector Model with Heterogeneous Households

We prove an existence theorem for a stationary perfect foresight equilibrium under borrowing constraints in a two-sector model with infinitely lived heterogeneous agents. The most patient agent holds all the capital in this solution. We also show that if the capital goods sector is capital intensive and capital income is increasing in the aggregate capital stock, then the aggregate capital stock eventually is monotonic and converges to the steady state stock. If the consumption goods sector is more capital intensive and capital income is increasing in aggregate capital we prove convergence to the steady state under more restrictive conditions. Periodic equilibria are shown to exist under weaker hypotheses. Journal of Economic Literature Classification Numbers: D52, D90, E13.     

Evaluation of national foresight activities: Assessing rationale, process and impact

The paper addresses the question of what constitutes an appropriate evaluation strategy for national foresight activities in different situations. The variety of rationales for foresight is explored, ranging from a desire to set priorities through to participation-oriented goals and building new networks around common visions and strategies. A generational model of foresight is used to show the evolution of key evaluation issues. The generic motivations for evaluation of accountability, justification and learning are discussed in the context of foresight. Evaluation grounded in the concept of behavioural additionality and the systems failure rationale is shown to be more suited as a rationale for foresight as public policy.Assessing the effects of foresight requires an understanding that it is only one of several influences on public policy. To be effective it needs to be tuned into the strategic behaviour and cycles of policy and economic actors. Cases are presented of evaluation of foresight programmes in the United Kingdom, Germany and Hungary. It is concluded that there is no “one-size-fits-all” evaluation approach and that the method selected is conditioned by motivation, timing and the level of aggregation. Foresight cannot be fully evaluated independently from its context. Foresight is being strengthened by the emergence of rigorous and systematic knowledge to assist learning and improvement.     

Foresight in science and technology

Emerging generic technologies seem set to make a revolutionary impact on the economy and society. However, success in developing such technologies depends upon advances in science. Confronted with increasing global economic competition, policy-makers and scientists are grappling with the problem of how to select the most promising research areas and emerging technologies on which to target resources and, hence, derive the greatest benefits. This paper analyzes the experiences of Japan, the US, the Netherlands, Germany, Australia, New Zealand and the UK in using foresight to help in selecting and exploiting research that is likely to yield longer-term economic and social benefits. It puts forward a model of the foresight process for identifying research areas and technologies of strategic importance, and also analyzes why some foresight exercises have proved more successful than others. It concludes by drawing an analogy between models of innovation and foresight.     

技术预见南方国家视野的困境

随着国家创新实力的增强,中国正在从南方国家向创新型国家演进,处境与当年日本相似。南方国家在开展技术预见时面临知识创新能力相对较弱和知识资产不足等困境,信息不对称可能导致技术预见失去效用。根据信息不对称理论,南方国家在掌握信息内容和时间方面与北方国家存在很大差异。掌握信息比较充分的北方国家处于相对有利地位,而信息比较贫乏的南方国家则处于不利地位,若盲目照搬北方国家的技术预见理论和实践,则可能落入南方国家的视野陷阱。中国创新全球效应日益突出,应在全球创新视野下开展技术预见,排除技术民族主义等干扰。     

Determinacy and Stability under Learning of Rational Expectations Equilibria

This paper studies relationships between the local determinacy of a stationary equilibrium in the perfect foresight dynamics, and its local stability in dynamics arising from econometric learning procedures. Attention is focused on linear scalar economies where agents forecast only one period ahead, and with an arbitrary, but fixed, number of predetermined variables. In such a framework, it is well known that there are no clear links between the determinacy of the stationary state in the perfect foresight dynamics on the levels of the state variable, and its stability under learning. The paper emphasizes, however, that this is not the right perfect foresight dynamics to look at whenever agents try to learn the coefficients of the perfect foresight dynamics restricted to an eigenspace of lower dimension. Indeed the paper introduces a growth rate perfect foresight dynamics on these coefficients and proves equivalence between determinacy in that dynamics and stability under learning provided that a simple sign condition is satisfied. Journal of Economic Literature Classification Numbers: E32, D83.     

Growth in stages

Existing North–South growth models generally ignore the possibility that the South becomes an innovating high-wage country. The present paper presents an analytically tractable North–South growth model in which the North innovates all the time, while the South is at first engaged in imitation and potentially starts to innovate too, later on. Three interesting results emerge from the analysis. First, a perfect foresight growth equilibrium may fail to exist. Second, there may be global indeterminacy in that both convergence to the steady state of the regime with imitation in the South and switching to the regime with innovation in the South represent perfect foresight equilibria. Third, technology policies in the South may have hysteresis effects: a temporary policy may lead the South permanently from imitation-driven to innovation-driven growth.     

The Bridge to Practice Model: a collaborative program designed for clinical experiences in baccalaureate nursing

The Bridge to Practice Model provides undergraduate nursing students with continuity in medical-surgical education through placement in the same hospital for all medical-surgical clinical rotations. Hospitals that participate in the bridge model provide senior clinical nurse preceptors whose time is paid for by the university. The university provides an on-site nurse faculty member who works with nursing education to coordinate all clinical groups. Institutional continuity and university/hospital collaboration result in less orientation time for students and faculty, more involvement with clinical support services and care management, and more informed employment choices by senior students. Challenges include recruitment of interested senior clinical nurses, retention of clinical liaison faculty, and management of the trade-off between institutional stability offered by clinical site continuity and the variety of experiences offered by rotation across several clinical settings.     

Mapping of scientific patenting: toward the development of ‘J-GLOBAL foresight’

The Japan Science and Technology Agency (JST) is in the process of building knowledge infrastructure by means of linking accumulated information assets to a variety of databases. It does not aim to develop knowledge data infrastructure based on proprietary format, but on an international standard format. JST is also in the process of creating ‘J-GLOBAL foresight’ [http://foresight.jst.go.jp (accessed June 2012)] in order to match up a variety of data such as results and indices of bibliometric analysis as well as of patent analysis derived from the knowledge infrastructure with applications like Google Maps and facilitate the visualisation of business information. This will contribute to help companies and institutions formulate business strategy based on the information obtained in the future. The former aims to be the bibliographic information version of the Data.gov, which discloses government data from the USA, while the latter seeks to be the Data-gov wiki version, which provides a demonstration by matching up governmental data with applications such as Google Maps.     

Cooperative research,government involvement,and timing of innovations

Government involvement in the innovation process, both direct and indirect, is introduced into a standard innovation time-cost trade-off model. Different forms of involvement are treated and each form entails cooperation between the firm and the government. The optimal development time (or project completion date) is determined and analyzed parametrically. This analysis produced five hypotheses concerning the effect of government involvement on the timing of innovations. Selected empirical applications (or tests) of the hypotheses are presented and then concluding remarks are made.     

Strategic foresight and organizational learning: A survey and critical analysis

Learning phenomena are a growing concern for strategic foresight, especially with respect to the question of integration of reflection and action. Although an agreement seems to emerge between practitioners and theorists about strong ties linking strategic foresight and learning (in particular organizational learning), the true nature of this link remains ambiguous. This article seeks to shed light on this link and to analyze the cognitive dimensions of foresight through a critical survey. The investigation follows the original ambivalence between foresight attitude and activity thus underscoring not only the virtues of foresight in learning phenomena, but also the limits of the usual literature.     

Strategic technology scanning

This article proposes a procedure for strategic technology scanning, an activity that has received insufficient attention in the literature to date. Strategic technology scanning is needed to strengthen the link between technology and corporate strategy. This link is ever present although not always explicitly managed. For instance, while it is commonly recognized that the corporate mission dictates the technological interests of the organization, it is not always sufficiently emphasized that it is the quality of technology foresight that shapes the corporate mission in the first place.Scanning enhances technology foresight by seeking major distinguishing features in the technological landscape. These features are termed landmark technologies and serve as indicators of evolving technological and economic potential. For the strategic manager landmark technologies can become focal points for understanding the external environment, very much as core competencies have become focal points for understanding the internal capabilities of the organization.The scanning procedure proposed here is tailored to fit conventional procedures for strategic planning. However, it employs new theoretical structures from the field of strategic technology analysis; and calls for involvement of all levels of the corporate hierarchy-from the corporate board to the technology analyst. It seeks to maximize corporate learning.     

Labor market integration policies and the convergence of regions: the role of skills and technology diffusion

We study the role of different labor market integration policies on economic performance and convergence of two distinct regions in an agent-based model. Production is characterized by a complementarity between the quality of the capital stock and the specific skills of workers using the capital stock. Hence, productivity changes in a region are influenced both by the investment of local firms in high quality capital goods and by the evolution of the specific skill distribution of workers employed in the region. We show that various labor market integration policies yield, via differing regional worker flows, to distinct regional distributions of specific skills. Through this mechanism, relative regional prices are affected, determining the shares that the regions can capture from overall consumption good demand. There occurs a trade-off between aggregate output and convergence of regions with closed labor markets resulting in relatively high convergence but low output, and more integrated labor markets yielding higher output but lower convergence. Furthermore, results differ substantially in several respects as distinct labor market opening policies are applied.     

Delphi analysis of national specificities in selected innovative areas in Germany and France

The increasing complexity of the relations between technologies and economics combined with more social pressure, global competition, technological change, as well as national budget restrictions, imply new challenges for public policies. Thus, to be able to forecast the development of knowledge and technological change in some well-known trajectories could be one of the major stakes for science technology and industrial policies. It is then not surprising that recent years have brought a significant revival of public foresight activities in many countries. The purpose of the paper is precisely to propose a new foresight method in order to obtain a taxonomy of the future technologies, and consequently to provide a better understanding of industrial dynamics. We present a statistical analysis of a Delphi investigation, based on scientific and technological knowledge complementarities, in order to obtain coherent clusters, which may be looked upon as a theoretical tool for political decisions. Our methodology is then applied to French and the German sectors of life sciences, elementary particles, energy, environment and natural resources.     

Perceptions of domain experts on impact of foresight on policy making: The case of Japan

In this study, the perceptions of domain experts who participated in foresight activities on the impact on policy making are examined by conducting interviews and surveys on five previous foresights in Japan between 1996 and 2007. The purpose of the study is to examine how domain experts look at the practice of foresight in general, and perceive its overall impact on policy making in particular, in the setting of Japanese foresight conducted in the past 15 years. There are two tasks for doing that in this study: to know the views of scientists and engineers who participated in foresights on the impact of foresights they participated; and to know the effect of respondent's characteristics on their perceptions on impact.There are two main findings of this study. First, the impact on policy making perceived by domain experts who participated in foresight activities in Japan is not very high. Second, there are different patterns of perception on the size of the impact on policy making depending on ages, organizations, member status during foresight, and science and technology areas, and habit of following the situation in general looking for any impacts after the foresight.     

The whip and the Bible: Punishment versus internalization

A variety of experimental and empirical research indicate that prosocial behavior is important for economic success. There are two sources of prosocial behavior: incentives and preferences. The latter, the willingness of individuals to “do their bit” for the group, we refer to as internalization, because we view it as something that a group can influence by appropriate investment. This implies that there is a trade-off between using incentives and internalization to encourage prosocial behavior. By examining this trade-off we shed light on the connection between social norms observed inside the laboratory and those observed outside in the field. For example, we show that a higher value of cooperation outside the laboratory may lower the use of incentives inside the laboratory even as it increases their usage outside. As an application we show that the model calibrated to experimental data makes reasonable out-of-sample quantitative forecasts.     

Developing a model to evaluate the impacts of science,technology and innovation foresight on policy-making

Technology foresight as a policy intelligence tool can offer vital inputs for policy-making in various domains. The relationship between foresight and policy-making has been presented in the literature by the policy-related functions of foresight, but the literature reflects a theoretical gap with the systematic evaluation model for the impact of foresight on policy-making. This research seeks to bridge the existing gap and uses the mixed method for this purpose. The mixed method approach used in this paper is the sequential exploratory design. First, the conceptual model is developed in the qualitative part of this research by using meta-synthesis and constant comparative method (CCM) of analysis. Second, in the quantitative part, quantitative tests are used to evaluate the dimensions and components of the developed theoretical model. The data collection tool is a questionnaire. The results confirm the proposed dimensions of the evaluation model.     

A compact space of transitive locally non-satiated preference relations

It is shown that the space of locally non-satiated continuous preorders, when equipped with the topology introduced in Back (1986), can be compacted without including locally satiated or non-transitive relations. This contrasts with the closed convergence topology. The trade-off is that the compaction includes relations which are not lower-semicontinuous.     

'Technology foresight towards 2020 in China': the practice and its impacts

Technology foresight has attracted increasing attention from government and academia as well as industry since the 1990s. However, the impact of technology foresight on national strategic decision-making varies from country to country. This paper aims to introduce the 'Technology Foresight towards 2020' exercise in China, which has been conducted by a research group in the Chinese Academy of Sciences. The paper consists of five parts: (1) introduction; (2) the framework for technology foresight towards 2020 in China; (3) the methodology including scenario building for identifying technology demands and the method for processing and analysing the data from a Delphi survey; (4) the major results of a Delphi survey in the following four research fields: Information technology, Biotechnology, Energy technology, Material science and technology; and (5) the impact of the research on decision-making concerning science and technology development in China.